VIX Slammed As Algos Forget Why They Sold 30 Mins Ago

Tyler Durden's picture


It would appear 'they' are reaching deep into the playbook to save stocks from the Fed's negativity... First they tried JPY momentum ignition - that failed... Then they tried the precious metals dump  - that failed... and now it's VIX slam time (as we predicted) and that is starting to have an effect... Machines are "fighting the fed" and BTFDing as they forget entirely why they were all selling in size 30 mins ago.


Having run out of options.. resort to Slamming VIX...


So now we "fight the fed" and BTFD in the "stretched" stocks...


Who could have seen this coming?

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Tue, 07/15/2014 - 11:21 | 4959150 _ConanTheLibert...
_ConanTheLibertarian_'s picture

World Algo War coming bitchez.

Tue, 07/15/2014 - 11:25 | 4959178 camaro68ss
camaro68ss's picture

How can you watch dancing with the stars when you have this real life drama happening in front of you. Hahah

Tue, 07/15/2014 - 11:28 | 4959188 Headbanger
Headbanger's picture

The Vix-O-Matic strikes again!


Tue, 07/15/2014 - 11:38 | 4959187 slaughterer
slaughterer's picture

Fed handbook for traders: "When USD/JPY pump and gold slam fails, the VIX slam is the best rally ignition starter." 

Question from back of audience: "But what happens when that fails too?"

Tue, 07/15/2014 - 12:33 | 4959462 asteroids
asteroids's picture

There's lot of things the FED can do. (1) Buy futures and slam them up near the close. They did this repeatedly in 2009/2010. (2) Change the rules. The idea is to fuck the shorts always and often. You can either me long or 100% cash. I prefer the latter. I await the inevitable disaster the FED has created and much lower prices.

Tue, 07/15/2014 - 12:41 | 4959486 Keltner Channel Surf
Keltner Channel Surf's picture

Never seen a lunchtime VIX slam fail, but the few times the 3:28 slam failed they just "fixed" it overnight in the futures ~ 2:00 a.m.

(With the Russell back near its coveted 15min 20 EMA, they can claim at least an interim victory, the bastards)

Tue, 07/15/2014 - 11:21 | 4959151 wallstreetapost...
wallstreetaposteriori's picture

i <3 algos....

Tue, 07/15/2014 - 11:23 | 4959152 Quinvarius
Quinvarius's picture

Too soon in the day for that.  People will just sell into it.

Tue, 07/15/2014 - 11:22 | 4959156 max2205
max2205's picture

Big fucking swings today...sure, no volatility here

Tue, 07/15/2014 - 11:22 | 4959159 Q-Q-Q
Q-Q-Q's picture

Economics have gone full retard

Tue, 07/15/2014 - 11:41 | 4959251 NOTaREALmerican
NOTaREALmerican's picture

Economics is just accounting + bullshit.   It must be full retard or it wouldn't work on the dumbasses.

Tue, 07/15/2014 - 11:23 | 4959164 Dr. Venkman
Dr. Venkman's picture

death throes? I hope so (but not holding my breath.)

Tue, 07/15/2014 - 11:27 | 4959170 buzzsaw99
buzzsaw99's picture

for the day of the untaper cometh as a thief in the night

Tue, 07/15/2014 - 11:35 | 4959224 Tenshin Headache
Tenshin Headache's picture

But the day of the crash will come like a thief. The markets will disappear with a roar; the currencies will be destroyed by fire, and the bankers and everything done by them will be laid bare.

Tue, 07/15/2014 - 11:39 | 4959244 NOTaREALmerican
NOTaREALmerican's picture

Re:  and the bankers and everything done by them will be laid bare.

But, there will be no punishment for the wicked, as the smart-n-savvy will create bullshit for the dumbasses blaming "those people" for all their problems. 

Tue, 07/15/2014 - 12:21 | 4959424 Eyeroller
Eyeroller's picture

The Ponzi Munchkin laid bare???


Tue, 07/15/2014 - 11:25 | 4959177 Bill of Rights
Bill of Rights's picture

On the Gold driveby CYNK was suspended for being too obvious.

Tue, 07/15/2014 - 11:33 | 4959212 timeless21
timeless21's picture

But..but look at those TV ads how the 'pros' are trading the news !

Tue, 07/15/2014 - 11:39 | 4959245 KnuckleDragger-X
KnuckleDragger-X's picture

Yep, see'em on the street corner shaking their moneymaker?

Tue, 07/15/2014 - 11:36 | 4959228 slaughterer
slaughterer's picture

Wait until the Fed algos paint the illusion of a "right shoulder" signal for short sellers, and then pump ES futures 20 points overnight to stop them all out. 

Tue, 07/15/2014 - 11:37 | 4959234 pakled
pakled's picture

"First they tried JPY momentum ignition - that failed... Then they tried the precious metals dump  - that failed"


Encouraging news...

Tue, 07/15/2014 - 11:37 | 4959236 NOTaREALmerican
NOTaREALmerican's picture

VIX...   Ahhhhh,   VIX.

Tue, 07/15/2014 - 11:38 | 4959240 youngman
youngman's picture

Before it all ends..there will be Hedege funds closing up shop....just quitting....we will see several of those liquidations before the end happens

Tue, 07/15/2014 - 11:41 | 4959253 KnuckleDragger-X
KnuckleDragger-X's picture

And moving to countries with no extradtion....

Tue, 07/15/2014 - 11:44 | 4959263 SheepDog-One
SheepDog-One's picture

Haven't we been reading about just that here for a while now?

Tue, 07/15/2014 - 11:40 | 4959249 SheepDog-One
SheepDog-One's picture

Gotta get every last retail nickel in there, then pull the trapdoor.

Tue, 07/15/2014 - 11:43 | 4959256 TabakLover
TabakLover's picture

Looks like that taint work'n either.  Nice.

Tue, 07/15/2014 - 11:43 | 4959257 SheepDog-One
SheepDog-One's picture

DOW now down a frightening -13 points, holy shit this could really be serious!

Tue, 07/15/2014 - 11:49 | 4959280 Colonel Klink
Colonel Klink's picture

Forgot so soon?  The HFT servers must be running out of memory.

Tue, 07/15/2014 - 11:53 | 4959297 gmak
gmak's picture

I thought that Algos were turned off when the FED was speaking or releasing an announcement?


Who is "THEY"? And, how does Tyler know that "THEY" are all acting in concert and with the same intent as an hour or two ago?


Tue, 07/15/2014 - 12:22 | 4959433 Eyeroller
Eyeroller's picture

"Skynet, it's Yellen here, we have a problem."

Tue, 07/15/2014 - 12:54 | 4959538 Keltner Channel Surf
Keltner Channel Surf's picture

You need a thick skin and a very short memory to be a successful algo, I mean .. uh .. ah, forgot what I was gonna say ...

Tue, 07/15/2014 - 13:09 | 4959604 ECK
ECK's picture

In the first graph showing the VIX vs S&P, are we looking at front month futures contracts or the indices? Also, its not possible to buy/sell the VIX (its only an index) so is ZH saying that the Fed/Yellen/Citadel/KevinHenry/etc. are suppressing vol by manipulating EVERY equity option contract the VIX is based on? Or is ZH saying the Fed is selling the VIX futures in a way that is causing the S&P to correllate in accordance, due to computers making trades off of crrellation readings.

Tue, 07/15/2014 - 15:54 | 4960286 Luckhasit
Luckhasit's picture

With a slam like that, i recommend the use of the DDT.

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